CNQC Announces 2022 Interim Results Accelerating for Project Process

• During the Period, accelerated the construction and property development projects contributed to an increase in total revenue of approximately 39.2% year-on-year to HK$3,840.0 million
• Construction sector from Hong Kong and Macau continued to grow steadily with 11 new projects undertaken during the Period, recording segment revenue of approximately HK$977.8 million, a year-on-year increase of 43.5%.
• During the Period, the Group actively promoted the advanced and green Modular Integrated Construction method to construction projects in Hong Kong
• The Group was pleased to won the industry award as one of the Top Ten Singapore Developers from BCI Asia, affirming the strength of the Group

 (31 August, 2022 - Hong Kong) CNQC International Holdings Limited (“CNQC International”, “the Company”, together with its subsidiaries, collectively “the Group”, stock code: 1240.HK), a leading property developer and contractor in Singapore, is pleased to announce its unaudited interim results for the six months ended June 30 2022 (“the Reporting Period”).

During the Reporting Period, the Group’s total revenue was approximately HK$3,840.0 million, representing an increase of approximately 39.2% over the six months ended 30 June 2021. The increase was mainly due to more sales revenue from construction and property development projects. The Group’s net profit was approximately HK$99.7 million and the profit attributable to owners was approximately HK$86.2 million. The profit attributable to owners dropped because the property development project of an associated company has pre-sold almost all the units available for sale at the beginning of the Period and therefore its profit contribution dropped during the Reporting Period. However, the performance of the Group’s core businesses was in line with expectation with steady growth.

Revenue from the foundation and construction in Hong Kong and Macau continued to grow steadily, with total revenue of approximately HK$977.8 million during the Period, representing an increase of approximately 43.5% over the six months ended 30 June 2021.

Construction business

The Group’s revenue from Singapore and Southeast Asia for the Reporting Period was approximately HK$2,266.3 million with completed 3 construction projects. As at 30 June 2022, there were 28 construction projects on hand and the outstanding contract sums were approximately HK$7,546.2 million.

For Hong Kong and Macau, revenue from the construction contracts in Hong Kong and Macau for the Reporting Period was approximately HK$977.8 million. During the Reporting Period, the Group had undertaken 11 new projects, mainly foundation and superstructure work for residential and commercial projects in Hong Kong. The total contract sum of these projects was approximately HK$951.6 million. As at 30 June 2022, there were 41 projects on hand with outstanding contract sums of HK$3,285.8 million.

The Group will strive to promote sustainability in environmental protection and energy-saving in the construction industry in Hong Kong, and actively promote the advanced and green Modular Integrated Construction (MIC) method to construction projects in Hong Kong. During the year, the Group successfully obtained a number of MiC construction projects in Hong Kong. Among them, the Group awarded the construction contract for the transitional housing project in Wong Yue Tan, Tai Po, in August 2022, which became the Group's first MiC construction project in Hong Kong. This will be the first construction project in Hong Kong to recycle and re-use the previously completed MiC units from ‘‘Nam Cheong 220’’, as requested by the government, so as to realize the concept of environmentally sustainable construction.

Property development business

During the Reporting Period, the revenue of property development business recorded HK$595.9 million, a year-on-year increase of 39.8%. As of 30 June 2022, the percentage of saleable area pre-sold of the Group’s Jadescape and Forett at Bukit Timah were 99.4% and 90.6% respectively, showing ideal sales performance. During the Reporting Period, the Group was pleased to won the industry award as one of the Top Ten Singapore Developers from BCI Asia, affirming the strength of the Group

On land bank status, the Group acquired the land parcels at Yau Tong Marine Lot No. 58 and 59 and the extensions thereto, which is intended for residential redevelopment. Foundation works and land exchange procedures are currently in progress. The Group acquired over 90% ownership in two blocks of old residential buildings in Sham Shui Po, Hong Kong through joint venture. It is intended to redevelop the site into a residential building with a commercial podium. Lands Tribunal Court Trial for a Compulsory Sale Order is expected to take place in September 2022. Site foundation works and excavation works have been commenced for another joint venture acquisition site in Tai Po, Hong Kong.

Mr. Cheng Wing On, Michael, Chairman of CNQC International, said: “Looking ahead, with the gradual easing of prevention measures in various countries, it will provide strong support for economic revival. The construction markets in Hong Kong and Singapore continued to grow rapidly, mainly due to the strong housing demand, which contributed to the continuous growth in the Group’s project sales. The Group believes that benefiting from the development of the Northern Metropolis, the construction market of Hong Kong in the next decade will show a very strong momentum. Therefore, the Group will continue to focus on Hong Kong and Singapore as our core business areas, actively explore more high-quality construction projects with development potential, and adopt a strategic market layout to seize the growing market space brought by the Hong Kong and Singapore markets and consolidate the Group’s competitiveness in both markets.”

“Moreover, the Group will continue to contribute to the development of sustainability in the Hong Kong construction industry, and actively promote the widespread application of MIC method, in order to continuously improve construction productivity and reduce resource consumption to achieve green and efficient production. In the future, the Group will further intensify the technological innovation and upgrade of the MIC method, continue to improve project quality with advanced green construction technology to contribute to the local industry, society and environment. At the same time, by adopting the development model of driving construction growth with property investment, the Company will explore opportunities for expanding a new market in the Guangdong-Hong Kong-Macao Greater Bay Area to further enhance the market share and competitiveness of the Group and formulate a stable development blueprint in the longer term, thereby creating higher returns for our shareholders.”

- End-